Item$1$

Item $1$

Queen Energy Inc. issued bonds on January $1,2023,$ that pay interest semiannually on June $30$ and December $31.$ The par value of the bonds is $$240,000,$ the annual contract rate is $8\%,$ and the bonds mature in $10$ years. $($Use TABLE $14$A$\mathrm{.}1$ and TABLE $14$A$\mathrm{.}2.)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

a$.$ For each of these three situations, determine the issue price of the bonds. $($Do not round intermediate calculations. Round the final answers to the nearest whole dollar.$)$

b$.$ For each of these three situations, prepare the journal entry that would record the issuance, assuming the market interest rate at the date of issuance was $(1)6\%,(2)8\%,(3)10\%.($Use PV tables in determining the issue price of the bonds. Do not round intermediate calculations. Round the final answers to the nearest whole dollar.$)$